The board of Kuwaiti telecom operator Viva Kuwait is due to meet today to discuss a takeover offer from its parent company Saudi Telecom Co (STC), according to a filing on the Kuwait Stock Exchange website.
Last week, Reuters reported that Saudi Arabia’s STC Group would offer 1 dinar ($3.30) per share to buy out other shareholders in its Kuwaiti affiliate Viva, which works out at a 9% discount on Viva's last closing price.
STC has received approval from Kuwait's market regulator for the takeover offer, with the buyout period open from December 27 to January 31, the statement said.
STC, which owns 26% of Viva, is seeking full control of its unit, which launched services in 2008.
Viva's shares plunged after STC announced its offer price in a statement to Riyadh's bourse, although the bid document states that the offer represents a 14% premium to Viva's three-month volume weighted average price, the report added.